1. Note: This is not the exact power point that
was presented at the Council Meeting,
Monday, May 19, 2014. That presentation has
been updated here with additional
information and slides in an attempt to
provide better understanding to the reader
absent a live narration to accompany it.

3. 2013/2014 Overview
general fund
Revenue Projections
 Budgeted original $3,476,852
 Projected actual $3,477,741
 Projected Net diff $ 889
more revenue

4. 2013/2014 Overview
general fund
Expenditure projections
 Budgeted original $3,476,851
 Projected actual $3,603,672
 Projected Net ($ 126,821)
more expenditures

5. 2013/2014 Overview
general fund
Deficits
 Final Revenue Projection $ 889
 Final Expenditures Projection $126,821
 Projected deficit $125,932
more expenditures

6. 2013/2014
Revenue & Expense Summary
 Real & Personal property tax
revenue decreased
 Drain assessments increased
 Tax Chargeback’s increased
 MERS/Retirement expenses
increased

7. Project Summary 2013/2014
 Server upgrade
 BS&A software upgrade
 Computer work stations
 Ice rink Liner
 Symons tornado pole replacement
 Wilson Park Lights
 Wilson park electric service upgrade
 Fire Alarm – Senior Center
 LED light upgrade
 Access Control/Alarms
 Established Grant Fund
 Increased contribution to Motor Pool
Total: $ 282,310

8. 13/14 General Fund Original
Proposed Budget: $3,476,851
13/14 General Fund Final
Projected Budget w/Increased
Expenses: $3,603,672
3.6% increase from original
proposal.

9. General fund
Summary of revenue vs expenses
Expenses exceeded revenue by
$125,932
This amount must be transferred
from Reserve Fund Balance to
General Fund to offset the deficit.
2013/2014

10. Reserve Fund Balance
Summary
 12/13 Fund Balance $1,193,366.81
 13/14 Transfer from Fund Balance to
General Fund $125,932
 13/14 Fund Balance Estimate
$1,067,436.81
 Auditor recommends 20 percent in fund
Balance which is $720,734.
 We currently have $1,067,437 = 29.6%

11. 2014/2015 General Fund
Overview
 Projected Revenues $3,584,677
 Proposed Expenses $3,584,677
 Net = balanced budget $ 0.00

12. 13/14 General Fund Budget Final
Projected Total $ 3,603,672
14/15 General Fund Proposed
Budget Total $ 3,584,677
Approximate 1/2% Decrease

13. Unit Name School Name CVT Rate Total Rate
Dundee Village Dundee 9.8110 27.8110
Plymouth TWP Plymouth-Canton 29.4074 29.4074
Canton TWP Plymouth-Canton 27.6073 35.6413
Plymouth City Northville 41.6423 41.6423
Tecumseh City Tecumseh 14.3966 42.3890
Clinton TWP Clintondale 4.5685 44.7712
Saline TWP Milan 0.9184 46.1454
Pittsfield TWP Milan 6.5916 51.8186
Dexter TWP Dexter 4.9944 52.3752
Milan City Milan 14.4000 61.2375
Chelsea City Chelsea 14.9555 62.0998
Saline City Saline 16.2800 62.5252
Ann Arbor City Ann Arbor 16.4501 63.0315
Ypsilanti City Ypsilanti 36.4947 83.5171
Millage Rates for some Municipalities in Monroe, Washtenaw, and Wayne in 2013

14. 14/15 Revenue Highlights
 Taxable Values Expected to
increase
 Revenue sharing Expected to
increase
 Potential revenue from Fire Run
Billing Ordinance (included in
proposed budget-York Twp Ord
under review)

15. 14/15 Expense Highlights
 Health Insurance increased
(Employees are Contributing)
 MERS/Retirement slight increase
 Increased contribution to Motor
Pool
 Decrease in energy cost due to led
project

16. Capital Improvement Fund
 For Non Street/Non Utility
Projects
 Allows for Long term Project
Planning
 Transferred Approximately
$76,000 from Health Benefit
Fund into Capital Improvement
Fund

17. Target projects from capital
improvement fund
 Roof Replacement on Preschool and Community
House
 Surge protection for Buildings
 Fire Department Siren upgrade
 Upgrade Security Camera @ Senior Center
 Tasers
 DPW Radios
 Police Radars
 Basket ball Hoop Backboards
 Total: $ 58,500

18. 13/14 Capital Fund Balance
$ 13,206.94
 14/15 Transfer of $76,000 from
health benefit fund into capital
improvement fund
14/15 Project Cost $ 58,500
 Capitol Fund Balance after
projects $ 44,521.94

19.  Created a dedicated, non
allocated expense fund $31,893
 Senior Millage Fund vote of the
people .5 MIL is projected to
generate $ 84,973

20.  Motor Pool Capital Outlay
FUND DESCRIPTION
2011/2012
ACTUAL
2012/2013
ACTUAL
2013/2014
BUDGET
ACTUAL
02/28/2014
ESTIMATED
2013/2014
2014/2015
REQUESTED COMMENTS
661-
900.000-
CAPITAL OUTLAY/FIXED
ASSETS
970.661
CAPITAL
OUTLAY/MOTORPOOL 0 0 20,000 247,860 302,860 90,000
Police Cruiser-Sedan
($40,000); 4x4 Pickup with
Plow ($30,000); Sweeper
Lease/Purchase
($40,000/yr @ 7 yrs - start
1/2 in FY 12/13 & 1/2 in FY
13/14)
TOTAL CAPITAL
OUTLAY/FIXED ASSETS 0 0 20,000 247,860 302,860 90,000

21.  Motor Pool Fund Balance
Cash & Cash Equivalents 6/30/2009 = $150,331.36
Cash & Cash Equivalents 6/30/2010 = $120,223.98
Cash & Cash Equivalents 6/30/2011 = <$ 9,106.37>
Cash & Cash Equivalents 6/30/2012 = $ 25,397.47
Cash & Cash Equivalents 6/30/2013 = $ 24,331.48
Est. Cash & Cash Equivalents 6/30/2014 = $ 24,331.48
Est. Cash & Cash Equivalents 6/30/2015 = $ 29,011.48

22. FUND DESCRIPTION
2011/2012
ACTUAL
2012/2013
ACTUAL
2013/2014
BUDGET
ACTUAL
02/28/2014
ESTIMATED
2013/2014
2014/2015
REQUESTED COMMENTS
202-900.000-
MAJOR STREET Expenditures -
CAPITAL OUTLAY/FIXED
ASSETS
970.453
CAPITAL OUTLAY/SURFACE
CONST. 558 0 52,500 20,841 52,500 0
Redman/Platt Intersection
Beginning June 2015 FY 14/15
approx. 0% (TTL $90,780 Const
Engr included in $141,116 Grant
Match = $141,116);
FY 15/16 $141,116
970.453
CAPITAL OUTLAY/SURFACE
CONST. 0 0 0 0 55,000 0
North St from First St to Michigan
Beginning June 2015 FY 14/15
approx. 0% construction (TTL
EST. $55,000 Design Engr;
$92,000 Const Engr; $91,200
Grant Match = $238,200);
FY 15/16 $183,200
970.xxx
CAPITAL OUTLAY/BRIDGE
REPAIR 0 0 0 0 0 85,000
Platt Road Bridge;
(Wabash Bridge FY 15/16
$25,000)
970.463
CAPITAL OUTLAY/ROUTINE
MTCE. 0 0 0 0 0 0
970.474
CAPITAL OUTLAY/TRAFFIC
SERVICES 0 0 0 0 0 0
970.479
CAPITAL OUTLAY/WINTER
MTCE. 4,864 0 0 0 0 0
TOTAL CAPITAL
OUTLAY/FIXED ASSETS 5,422 0 52,500 20,841 107,500 85,000
Major Street Project Budget

23. MAJOR STREET FUND BALANCE AND FUTURE PROJECTS
Fund Balance 6/30/2010 = $ 412,716.73
Fund Balance 6/30/2011 = $ 412,716.73
Fund Balance 6/30/2012 = $ 515,074.45
Fund Balance 6/30/2013 = $ 541,496.83
Est. Fund Bal. 6/30/2014 = $469,821.83
Est. Fund Bal. 6/30/2015 = $369,120.83 FY 15/16 project balance
Est. Fund Bal. 6/30/2016 = $ 19,804.83 $ 349,316
$ 369,120.83 June 30, 2015 Estimated Fund Balance
$ (349,316.00) FY 2015/16 Road/Bridge Project Bal Due
$ 19,804.83 Estimated June 30, 2016 Fund Balance

24. Water / Sewer 13/14
Summary
 Revenues budgeted $3,043,598
 Revenues projected $2,825,460
 Expenses budgeted $3,043,600
 Expenses projected $2,889,221
 Net difference ($63,761) shortfall

25. Water / Sewer 14/15
Summary
 Revenues projected $2,815,362
 Expenses projected $3,035,589
 Net difference ($ 220,227)
shortfall

26. Summary of Water/Sewer
Fund 13/14 & 14/15
 Projected revenues decreased because
of decreased usage
 Expenditures decreased
 Meter replacement costs increased 30%
 North St. engineering Costs 13/14
 Hydrant replacement costs
 Wastewater treatment plant
replacement pump

27. Summary of Water/Sewer
Fund 13/14 & 14/15
Continued
 Water Treatment Plant pump
upgrade
 North St water line replacement
15/16
 Variable Debt and Loan payment

28.  Water/Sewer Fund Capital
Outlay
FUND DESCRIPTION
2011/2012
ACTUAL
2012/2013
ACTUAL
2013/2014
BUDGET
ACTUAL
02/28/2014
ESTIMATED
2013/2014
2014/2015
REQUESTED COMMENTS
592-
900.000-
Water / Sewer Fund
Expenditures - CAPITAL
OUTLAY/FIXED ASSETS
970.556
CAPITAL OUTLAY/WATER
DEPT. 0 0 4,417 0 4,417 25,000
Fire Hydrant Replacement
($6,250 * 4); Water Filter
Project - Pd by RRI & tap
fees
970.556
CAPITAL OUTLAY/WATER
DEPT. 0 0 0 0 25,000 0
Water Main - North St from
First St to Michigan
Beginning June 2015 FY
14/15 approx. 0%
construction (TTL EST.
$25,000 Design Engr;
$92,000 Const Engr;
$111,000 Grant Match =
$228,000);
FY 15/16 $203,000
970.567
CAPITAL OUTLAY/SEWER
DEPT. 0 0 4,417 0 4,417 15,000
Pump Station Pump
($5,000); Variable
Frequency Drive (VFD)
($10,000)
TOTAL CAPITAL
OUTLAY/FIXED ASSETS 0 18,240 8,834 0 33,834 40,000

29. Water/sewer projected deficit 13/14
($63,761)
 Water/sewer projected deficit 14/15
($220,227)
(Before any rate increase.)

30.  13/14 deficit of $63,761 is
covered from Water Sewer
Reserve Fund transfer leaving
water/sewer Fund balance
$442,800 after 13/14
 14/15 deficit of $220,227 is
covered from Water Sewer
Reserve Fund transfer leaving
water/sewer Fund balance
$ 214,345 after 14/15 ($203,000 is
dedicated to FY 15/16 North St. Project)

31. Water/Sewer Fund Balance
and Future Projects with out
Rate increase
DESCRIPTION
2011/2012
ACTUAL
2012/2013
ACTUAL
2013/2014
BUDGET
ACTUAL
02/28/2014
ESTIMATED
2013/2014
2014/2015
REQUESTED COMMENTS
(63,761) (220,227) difference
Cash & Cash Equivalents 6/30/2007 = $ 443,816.00
Cash & Cash Equivalents 6/30/2008 = $ 873,763.46
Cash & Cash Equivalents 6/30/2009 = $ 904,836.51
Cash & Cash Equivalents 6/30/2010 = $ 878,151.73
Cash & Cash Equivalents 6/30/2011 = $ 426,612.74 FY 15/16 project balance 203,000
Cash & Cash Equivalents 6/30/2012 = $ 529,490.70
Cash & Cash Equivalents 6/30/2013 = $ 514,061.21
Est. Cash & Cash Equivalents 6/30/2014 = $ 442,800.21 214,345.21 June 30, 2015 Estimated Fund Balance
Est. Cash & Cash Equivalents 6/30/2015 = $ 214,345.21 (203,000,.000) FY 2015/16 Road Project (North St.) Bal Due
$ 11,345.21 Estimated June 30, 2016 Fund Balance
(Assuming All Else Status Quo)

32. Water/Sewer Fund Balance
and Future Projects with rate
increase
Cash & Cash Equivalents 6/30/2007 = $ 443,816.00
Cash & Cash Equivalents 6/30/2008 = $ 873,763.46
Cash & Cash Equivalents 6/30/2009 = $ 904,836.51
Cash & Cash Equivalents 6/30/2010 = $ 878,151.73
Cash & Cash Equivalents 6/30/2011 = $ 426,612.74 FY 15/16 project balance $ 203,000
Cash & Cash Equivalents 6/30/2012 = $ 529,490.70
Cash & Cash Equivalents 6/30/2013 = $ 514,061.21
Est. Cash & Cash Equivalents 6/30/2014 = $ 450,300.21 $ 450,300.21 June 30, 2015 Estimated Fund Balance
Est. Cash & Cash Equivalents 6/30/2015 = $ 450,300.21 $ (203,000.00) FY 2015/16 Road Project (North St.) Bal Due
$ 247,300.21 Estimated June 30, 2016 Fund Balance
(Assuming All Else Status Quo)

33. Rate increase proposal
$11,345 Fund balance is
insufficient
14% rate increase is required to
address the projected 14/15
deficit of $220,227 and provide
sufficient revenues to cover
expenses
This fund must be self sustaining

34. Rate increase proposal
 Auditors Reserve Fund Balance
Recommendation is 50% which
equals $1,511,000
 Current Reserve Fund Balance is
$247,300 which is 8.1%.

35. Rate increase proposal
Continued
 Average increase per household
with a 14% increase is $27.48/qtr
Billing Code
Effective Feb 1,
2013
(Current Rates)
Proposed Effective April 1,
2014 (w/ 14%
increase)
Billing Charge, (Per Bill) $1.15 $1.32
Water & Sewer Readiness-to-Serve Charges, (Per Qtr) $91.68 $104.52
Water & Sewer Commodity Charges (Per 1000 Gallons) $5.75 $6.55
Typical Residential Usage (in 1000 Gallons) 18 18
Quarterly Water/Sewer Bill without Rubbish $196.26 $223.73
Percent Change 12.00% 14.00%
Average Annual Increase $84.11 $109.90
Average Quarterly Increase $21.03 $27.48

36. Rate increase proposal
Continued
 Current Comparables
0
50
100
150
200
250
300
350
Total Fees for Water, Sewer,
and Readiness to Serve
3/4"meter/bill
Total Fees for Water,
Sewer, and
Readiness to Serve
3/4"meter/bill
Municipality Total Fees for Water, Sewer
and Readiness to Serve ¾”
meter/bill
Canton N/A
Clinton N/A
Tecumseh $122.11
Saline $176.63
Milan $195.18
Dundee $219.73
Plymouth $222.02
Dexter $243.00
Chelsea $321.42

37. Rate increase proposal
Continued
 Average increase per household
with a 14% increase is $27.48/qtr
Municipality Total Fees for Water, Sewer
and Readiness to Serve ¾”
meter/bill
Canton N/A
Clinton N/A
Tecumseh $122.11
Saline $176.63
Dundee $219.73
Plymouth $222.02
Milan $222.41
Dexter $243.00
Chelsea $321.42
0
50
100
150
200
250
300
350
Total Fees for Water, Sewer,
and Readiness to Serve 3/4"
meter/bill
Total Fees for Water,
Sewer, and
Readiness to Serve
3/4" meter/bill

38. W

39. Water Filter Project
why we’re doing it?
 The treatment plant has been in production since
1988.
 In this 25 year span it has pumped nearly 8 Billion
gallons of water.
 It removes almost 2 tons of Iron per year from the
water (or nearly 50 tons in 25 years)
 The last filter inspection showed that the media
needed replacement.
 Water production only competes with taxes as the
income generator for the City.
 The City must remove Iron from the water as a
State regulation.

40. Water Filter Project
why we’re doing it?
 Allowing breakthrough of Iron, through the filters,
could result in fines.
 Allowing Iron to even some iron could result in
staining white clothes.
 Proactively approaching this problem means we will
have some choices.
 This brings us to the subject of those choices:
 Do the Minimum of filter refurbishment (approximately
$250,000 see attached)
 Address all the known issues of 25 years of service
(not suggested)
 Some compromise in-between (approximately $350,000
see attached)

41. WATER FILTER PROJECT FINANCING PLAN
Project Cost iron filter project $ 250,000
automated back washing system 105,000
$ 355,000
Financial Plan
Water RRI through June 30, 2014 $ 95,014.43
Sewer RRI through June 30, 2014 68,293.69
$ 163,308.12
Water RRI July 1, 2014 thru Dec, 31, 2014 15,740.00
Sewer RRI July 1, 2014 thru Dec, 31, 2014 26,180.00
$ 205,228.12 $ 205,228.12
Water RRI Jan 1, 2015 thru June 30, 2015 - 14,700.00
Sewer RRI Jan 1, 2015 thru June 30, 2015 - 14,700.00
$ 205,228.12 50,000.00
FY 2014/2015 W/S capital transfer (tap fees) 50,000.00 284,628.12 12/31/14
$ 255,228.12
YTD 3/31/14 FY 2013/2014 Wtr NO TAPS BUDGETED 14,700.00
YTD 3/31/14 FY 2013/2014 Swr NO TAPS BUDGETED 14,700.00
$ 284,628.12 12/31/14

42. Closing Comments……….
 For the first time in several years we will be
able to use a portion of the annual County 911
fees to offset Dispatch Center wage costs.
(911 Center upgraded is funded)
 Maintaining reduced Residential water sewer
taps fees. Reduced from 10K to 5K in 13/14.
 There is no change to the 14.4 City Millage Tax
Rate. Milan still has the lowest city tax rate in
Washtenaw County

43. Thank you !!